Also Notes Receivables and Balance Sheet

Cullumber Company closes its books on its July 31 year-end. The company does not make entries to accrue for interest except at its year-end. On June 30, the Notes Receivable account balance is $26,000. Notes Receivable include the following. Date Maker Face Value Term Interest Rate April 21 May 25 9% Coote Inc. Brady Co. BMG Corp. $4,400 8,400 13,200 Maturity Date July 20 July 24 90 days 60 days 6 months 11% June 30 December 31 7% During July, the following transactions were completed. July 5 14 Made sales of $4,580 on Cullumber credit cards. Made sales of $500 on Visa credit cards. The credit card service charge is 2%. Received payment in full from Coote Inc. on the amount due. Received payment in full from Brady Co. on the amount due. 20 24 Journalize the July transactions and the July 31 adjusting entry for accrued interest receivable. (Interest is computed using 360 days; omit cost of goods sold entries.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit July 5 Accounts Receivable 4,580 Sales Revenue 4,580 July 14 V Cash 490 Service Charge Expense 10 Sales Revenue 500 July 20V Cash 4,499 Notes Receivable 4.400 Interest Revenue 99 July 24 V Cash Notes Receivable 8,400 Interest Revenue July 31 v Interest Receivable Interest Revenue